Each ruble invested in Moscow’s tourism industry brings more than three rubles in revenue to the city
On the eve of World Tourism Day experts of Moscow’s Committee on Tourism and the Higher School of Economics National Research University analyzed the impact of the development of the capital’s tourism industry on other sectors of the economy. The results of the study showed that this industry has a high multiplier effect, boosting consumption in more than 40 sectors. In turn, the demand generated through tourism creates new jobs. Experts also note that this effect is most noticeable in Moscow. Each ruble invested in the development of the hospitality industry brings 3.12 rubles into the capital’s economy.
The multiplicative effect of the tourism industry in the capital is higher than the national average. The gross value added (GVA) multiplier for the total tourism industry in Russia as a whole is 3.40, which means that a one million ruble increase in tourism GVA will lead to a 2.40 million ruble increase in GVA in related industries. In Moscow this indicator is 3.85. The employment multiplier for Russia as a whole is 3.55 (i.e. one job in an industry creates 2.55 jobs in related industries), while in the capital it is 4.30.
Due to the involvement of industries with high tax burden (mainly income tax, social contributions and VAT) the tax multiplier of the tourism industry is 3.00, while in Moscow it reaches 3.18.
“Such high figures are explained not only by the growth of tourist traffic to the capital, but also by the increase in visitors’ economic activity. The growth in the end-user demand for tourism services automatically triggers a chain reaction in related industries, strengthening the overall economic multiplier effect. This demonstrates that tourism today is highly integrated into and forms a significant part of the city’s financial system,” said Olga Nechaeva, head of the Department of Targeted Program Planning of Moscow’s Committee on Tourism.
Marsel Salikhov, Director of the Center for Economic Expertise at the e Institute of Economic Studies of the Higher School of Economics National Research University, noted that the assessment of tourism’s contribution to the economy is based on multipliers- figures which express the extent to which the growth of output in one industry triggers growth in related sectors of the economy. The multipliers shows the aggregate change in gross output, gross value added, employment and tax revenues that is caused by an increase in the end-user demand for tourism services. Such an approach allows analysts to take into account direct effects (e. g., increased hotel revenue), indirect effects (increased orders to construction companies, increased employment in the services sector), and induced effects associated with increased consumer spending as a result of work in the tourism industry.
Experts from the Institute of State Management of the Higher School of Economics National Research University estimated the economic effect of tourism development based on seven industry multipliers, one for each of the main areas of tourism activity: hotels, restaurants and cafes, rail travel, travel by car, air travel, travel agencies and operators, and museums and cultural institutions.
“The tourism sector cannot be considered in isolation, as its development affects the products of related industries (real estate, catering, transportation and so on) by creating demand. The tourism sector not only acts as a direct consumer of resources, but also creates chains of production and consumer relations, involving a significant number of supplier industries and boosting their economic turnover,” explained Lyailya Sinyatullina, Director of the Center for Analysis of the Activities of Executive Authorities, at the Institute of State Management of the Higher School of Economics National Research University.
Over the past five years in Moscow, the number of tourists with incomes 2–2.5 times higher than the average level has increased significantly: if in 2019 there were 3.4 million such tourists, by 2024 they numbered 5.1 million. The Russian capital remains a popular international destination for business trips, as well as individual travel for cultural and entertainment purposes. All of these types of travel involve high spending. Tourists’ average length of stay in the capital increased by two days, from three to five days, stimulating additional consumption.
Spending by Russian travelers has grown 15 percent faster than inflation over the past five years — tourists are actually spending more. Compared to 2010, industry turnover and budget revenues have grew by more than 2.8 times in real terms. In addition, from 2019 to 2024, there was an increase of approximately 11 percent in tourist travel spending (on shopping, food, lodging and other expenses), in real terms.
Olga Nechaeva emphasized that the turnover of Moscow’s tourism industry is increasing faster than inflation. This means that it’s not just about rising prices — tourists have actually started spending more, choosing better services and stay options.
The Moscow Tourism Committee issues up-to-date information on the dynamics of tourism development in Moscow. In 2024, tourist flow to the capital amounted to 26 million people and exceeded the pre-pandemic figures, and bringing estimated revenues of 235 billion rubles to the city budget. Detailed analytics on Moscow’s tourism industry can also be found on the Russpass. Business website.